Zimbabwe’s big platform EcoCash has been seeing a rising demand for the crypto transaction as the country cut back on monetary and stocks to secure economy shakedowns.
It can be remembered that the local inflation and the currency losing its value, Zimbabwe has banned the use of mobile payments and trades in the stock market, adding another hit to people’s suffering in the midst of an economic crisis in the country.
In its current situation, most of the transactions were only through mobile payments as there was a shortage of cash in the bank right now. Last year, foreign exchange and currencies were initially prohibited in circulation, thus, saw the rebirth of Zimdollar, a currency that was last used after hyperinflation in 2009. It has lost importance vs US dollar in the last three weeks.
This traced back to the reason why Zimbabwe has stopped using cash and switch to mobile payments.
As of press time, these e-wallets account for about 85% of all transaction volumes. The monetary and economic uncertainty in recent years has forced Zimbabweans to switch from cash to using mobile money. With mobile wallets now accounting for 84.8% of all transaction volumes.
Later on, the stocks market has become the next target when the figures have gone to a bear market.
Recently, the Zimbabwe Stock Exchange halted trading to follow directions of the Information Ministry preventing traders to buy shares of dual-listed firms.
Assuring the public, its central bank governor, John Mangudya told the press that currency reserves are intact and to sustain the foreign monetary flow.
Critics have loudly expressed dissent to the new system. They mentioned that these systems will only expedite the fall down of local currency. The measures of the Reserve have been drastic and could add to the worsening condition says Tendia Biti, finance minister.
Trying to offer solutions to this, local big platform EcoCash has been pointed out as the culprit of bringing up the numbers of conversations, particularly the street exchanges of values in the market.
The tension happened as the government claims that money systems in mobile were conniving to sabotage the economy.